Electricity Self-Consumption in Spain

Simplified Compensation

Simplified compensation in self-consumption

The simplified compensation of surpluses in self-consumption facilities is a mechanism regulated by Law thanks to Royal Decree 244/2019, which can be used by supply points with self-consumption that meet the following requirements:

  • The energy that is generated has to be of renewable origin.
  • The installed power must be equal to or less than 100 kW.

The following self-production modalities can be used for this simplified compensation mechanism:

  • Individual self-consumption in internal network with surpluses.
  • Collective self-consumption in internal network without surpluses
  • Collective self-consumption in internal network with surpluses.
  • Collective self-consumption through a low voltage network, in which at least one of the associated energy use points is connected to the internal network to the point of generation.


How does the simplified compensation of surpluses work in individual self-production?

The excess energy is the energy produced by the photovoltaic solar panels, since it is not used immediately, it will circulate through meters and will be discharged to the distribution network.

The remaining power of the electrical energy is counted by meter in units of one hour and can be calculated by two different mechanisms (depending on the energy consumption per hour):

  • The hourly net balance.
  • The simplified compensation.
  • Hourly net balance, consisting of the net balance between the generated energy poured into the network and the energy consumed from the network in the one-hour stretch.

In other words, the energy per kilowatt-hour injected into the grid is subtracted from the energy per kilowatt-hour used from the grid during that hour. If the energy injected into the grid is higher than the energy consumed, the difference will go into the compensation mechanism. If the consumption is higher than the power generation in one hour, there is no power for compensation and the power consumption above the power generation is recorded at the regular consumer price.

The simplified compensation mechanism determines that the energy that is not used or discounted immediately due to the hourly balance is registered in the regulatory meter and is converted into economic value at the price determined by the trading company. This value reverts directly to the electricity bill, as shown below:

  • The economic value of the surplus energy generated is discounted from the economic value of the energy consumed from the network.
  • If the previous resulting value is negative (that is, if the value of the surplus energy is higher than the energy used from the network), there remains an economic value of the energy term of zero euros, since the law indicates that at most compensates the value of the energy consumed from the grid.


Advantages of simplified compensation in self-consumption

The energy that you do not consume is not wasted

When we generate more energy than we consume, it is possible to pour this energy into the grid. This compensation will never depend on the KWh generated, it will be the economic compensation on the invoice.

Reduce energy cost to zero

It is impossible to make money with this system, but the cost of the energy consumed can be reduced to zero. Usually not all of the generated energy is used and the remaining energy is used in this way. The type of simplified compensation will be determined by the marketer who signs the contract with the supplier.

This discount is very important, it should be noted that the bill will never be 0 euros, because in the case of compensation, the remaining part will belong to the energy period. In addition, we will always have to pay for the electricity we consume from the network.

Compensation for energy discharged to the grid can occur within a month. In cases where we want to benefit directly or earn money, we must use other methods and register as producers.

Do not run out of supply

With this type of photovoltaic device, we not only dump excess energy into the grid, but we also use it when the energy generated is insufficient, which means that even if we have a self-consumption installation, we will never lose energy.

No procedures or tedious administrative procedures

In this way, the company responsible for the installation (be it a marketer, installer or another type of company) is usually in charge of managing all the necessary management procedures to enjoy compensation for the remaining energy.

Pay off the solar installation before

In addition, this overage compensation not only saves energy, it also pays for the equipment faster than solar equipment without this compensation system.

Consumers make more use of their percentage of panel production, saving costs, which will help reduce the payback of photovoltaic equipment.